Tambang Timah plunges after Busang failure

JAKARTA (JP): State-owned tin mining company PT Tambang Timah's shares were under pressure yesterday as the market reacted negatively to its failure to join the Busang gold project.

The company's shares plunged by Rp 400 to close at Rp 4,425 (US$1.86) from the previous day's Rp 4,825.

Securities analysts attributed the drop to its failure to participate in the controversial Busang gold mining project in East Kalimantan.

Minister of Mines and Energy I.B. Sudjana said yesterday the government agreed on Bre-X's proposal to own 45 percent of the mine and the Indonesian government and private firms owning 55 percent.

Under a memorandum of understanding signed Sunday night, PT Askatindo Karya Mineral, PT Amsya Lyna and their local partners get 30 percent; Freeport 15 percent; and the government, through the Ministry of Finance, 10 percent.

Jakarta Stock Exchange (JSX) prices ended 0.9 percent lower yesterday and the JSX composite index closed at 695.21, down 6.55 points from the previous day's index of 701.76 points.

Total turnover was 189.38 million shares, down from the previous day's volume of 173.23 million shares.

Yesterday's transaction value also fell to Rp 440.95 billion from the previous day's transactions of Rp 463.3 billion.

In other development, AFP reported yesterday that share prices in Hong Kong, China and Taiwan fell yesterday amid jitters about the health of China's patriarch Deng Xiaoping, dealers said.

Hong Kong share prices eased 0.3 percent after recovering in late trade from a sharp fall triggered by reports that Deng's health was failing.

"I think the market has been shaken out of its earlier jitters," after Beijing denied rumors that Deng's health had taken a turn for the worse, said Alex Tang, research head of Yamaichi (International) Securities.

The Stock Exchange of Hong Kong's key Hang Seng Index lost 41.68 points to finish at 13,102.94.

In Shanghai, B shares, nominally reserved for foreign investors, fell 6.96 percent after rumors that patriarch Deng was seriously ill swept through the market, brokers said.

The Shanghai Stock Exchange's B share index dropped 4.75 points to close at 63.45 points.

In Taipei share prices in Taiwan finished 0.6 percent lower in response to reports that China's paramount leader's health was deteriorating.

The Taiwan Stock Exchange weighted price index declined 45.15 points to 7, 642.03.

In Tokyo, the leading barometer of the Tokyo Stock Exchange dropped 279.90 points to finish the session at 18,470.75 while the broader Topix index of all shares on the first section closed 12.62 points lower at 1,381.12.

In Singapore, the Straits Times Industrials index of leading shares on the Stock Exchange of Singapore fell 26.31 points to 2,229.79. The broader All-Singapore index was down 5.79 points to 567.24.

In Sydney, the Australian Stock Exchange's key barometer, the All Ordinaries index, climbed 8.5 points to break through the crucial 2,500-point barrier and close at 2,501.7 points.

The Kuala Lumpur Stock Exchange's 100-share weighted composite index fell 4.58 points to 1,247.90. The lesser second board index dropped 2.69 points, or 0.4 percent, to 639.92.

In Seoul, the composite index closed down 5.99 points at 706.94.

In Bangkok, the broad-based Stock Exchange of Thailand (SET) index fell 8.05 points to close at 700.15 points, while the selected SET 50 index was off 0.78 point at 50.87 points.

In Manila, the Philippine Stock Exchange index fell 8.41 points to 3,306.43.

In Wellington, the key New Zealand Stock Exchange-40 capital index rose 3.48 points to 2, 331.32.